Early Age Co., Ltd. (3248) AI Stock Analysis

• Market Cap: ¥2.76B
• Dividend Yield: 4.33%
• Average Volume (3M): 6.88K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.45
• Revenue Growth: -30.38%
• EPS Growth: -47.13%
• Country: JP
• Employees: 15
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 23.84
• Shares Outstanding: 3,181,000
• 10 Day Avg. Volume: 7,210
• 30 Day Avg. Volume: 6,876
• PEG Ratio: -0.20
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -2.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥907.00 ▲(10.88% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held back primarily by elevated leverage and inconsistent cash generation (including negative free cash flow and weaker cash conversion in 2025). Offsetting this, valuation is compelling (low P/E and solid dividend yield) and technicals are moderately constructive, but the financial risk profile prevents a higher overall rating.

Positive Factors

Strong recent revenue growth

Consecutive double‑digit top‑line growth in 2024 and 2025 demonstrates the company's ability to scale projects and capture demand in its markets. Sustained revenue expansion supports operational leverage, capacity investment and strategic reinvestment if cash conversion stabilizes.

Solid operating margins

Maintained gross margins around 30–32% and a ~15% EBIT margin indicate durable project profitability and some pricing or cost control strength. These margins create a structural cushion to absorb cyclical pressure and underpin longer‑term operating cash flow potential.

Modest equity base growth

Gradual equity growth provides a modest capital buffer against property cycle volatility and funding stress. A larger equity base improves solvency metrics and gives management scope to pursue organic growth or selective investments without sole reliance on new debt.

Negative Factors

Elevated leverage

High debt‑to‑equity (~2x) materially increases sensitivity to interest rates and property cycles, constraining strategic flexibility. Persistent leverage raises refinancing and covenant risks and can limit the company's ability to fund growth or weather downturns without dilutive or costly financing.

Weak and inconsistent cash generation

Sharp OCF decline and repeated negative free cash flow reduce internal funding for capex, dividends or debt paydown. With operating cash covering less than a third of net income in 2025, the company may need external funding more often, exacerbating leverage and liquidity strain.

Deteriorating returns and margins

Falling ROE and compressed net margins signal weakening capital efficiency and profitability, possibly from higher costs, mix shifts or timing. Lower returns reduce retained earnings growth, impair reinvestment capacity and weaken the company's ability to generate shareholder value over the medium term.

Early Age Co., Ltd. Business Overview & Revenue Model

Company Description

Early Age Co., Ltd. engages in the real estate business in Japan. It operates through Operation management business and Development and sales business segments. The Operation management business segment is involved in the leasing of owned and sub-leased properties; rental management and tenant intermediation for income-generating real estate; rental and management of parking lots; provision of rental management agency and cleaning equipment management; and renovation and maintenance services, such as restoration, repair works, and cleaning. The Development and sales business segment develops and sells commercial condominiums for rental business. The company also offers rental brokerage services for residential real estate, stores, offices, etc.; and consulting on the purchase and sale of income-generating real estate. The company was incorporated in 1986 and is headquartered in Tokyo, Japan.

Early Age Co., Ltd. Financial Statement Overview

Summary

Income statement trends are mixed (strong revenue growth but weaker 2025 margins), the balance sheet is highly leveraged (debt-to-equity ~2.05) with ROE cooling (~5.9%), and cash flow quality is weak with sharply lower operating cash flow and negative free cash flow in 2025—collectively indicating elevated financial risk despite acceptable operating profitability.

Income Statement

Revenue has been volatile despite strong growth in 2024 (+37%) and 2025 (+63%). Profitability is decent for the sector, with gross margin holding near ~30–32% and 2025 EBIT margin at ~15%, but earnings weakened materially in 2025 versus 2024 (net margin fell from ~11.2% to ~8.5%), suggesting higher costs, mix shift, or less favorable project timing.

Balance Sheet

Leverage is elevated, with debt-to-equity consistently around ~1.9–2.4 and 2025 at ~2.05, which increases sensitivity to property cycles and funding conditions. Equity has grown modestly over time, but returns have cooled recently (ROE fell to ~5.9% in 2025 from ~11.6% in 2024), indicating weaker profitability relative to the capital base.

Cash Flow

Cash generation is inconsistent. Operating cash flow dropped sharply in 2025 (to ~¥0.45B from ~¥2.09B in 2024), and free cash flow swung negative in multiple years, including 2025 (~-¥1.24B) and 2021 (~-¥0.94B). In 2025, operating cash flow covered less than a third of net income, pointing to weaker cash conversion and/or working-capital investment needs.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	3.29B	4.73B	3.44B	3.70B	3.34B
Gross Profit	1.04B	1.47B	1.07B	1.15B	1.00B
EBITDA	742.45M	1.12B	748.00M	847.28M	636.85M
Net Income	280.13M	529.85M	326.99M	375.58M	258.52M
Balance Sheet
Total Assets	15.19B	14.40B	13.49B	13.15B	13.42B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.78B	920.87M	964.11M	1.03B
Total Debt	9.69B	8.79B	8.56B	8.36B	9.02B
Total Liabilities	10.46B	9.84B	9.35B	9.25B	9.69B
Stockholders Equity	4.73B	4.56B	4.14B	3.91B	3.74B
Cash Flow
Free Cash Flow	-1.24B	841.93M	-126.25M	719.45M	-939.60M
Operating Cash Flow	449.15M	2.09B	840.21M	1.17B	375.17M
Investing Cash Flow	-1.70B	-1.35B	-992.17M	-473.38M	-1.41B
Financing Cash Flow	784.61M	118.27M	108.72M	-757.23M	806.27M

Early Age Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 818.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3248, the sentiment is Negative. The current price of 818 is below the 20-day moving average (MA) of 886.80, below the 50-day MA of 874.20, and below the 200-day MA of 848.22, indicating a neutral trend. The MACD of 4.14 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 59.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3248.

Early Age Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥18.27B	3.07	―	4.71%	10.42%	48.21%
3242	68 Neutral	¥19.73B	20.76	―	3.69%	84.40%	142.34%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3248	59 Neutral	¥2.76B	8.98	―	4.33%	-30.38%	-47.13%
3475	57 Neutral	¥43.67B	-26.35	―	3.75%	-8.66%	-53.57%
8918	57 Neutral	¥13.84B	114.89	―	1.11%	―	―
3246	50 Neutral	¥6.48B	9.72	―	3.17%	5.99%	-35.12%